Country Of Origin Effect
Sometimes the opposite situation may occur. The country the type of product the image of the company and company s brand all have an effect on whether the country of origin will engender a positive or negative reaction.
A Cool Effect The Direct And Indirect Impact Of Country Of Origin
The country of origin may be an important element in the perceptions consumers have of products and services especially where.
Country of origin effect. The counrty origin effect is not stable sometimes it may change during the time. Such bias is based on the image of the country in customer s minds. In recent years there has been a lot of research on how the coo effect influences consumers and this has led to a renewed effort to associate and dissociate the products from the countries that they are made in.
This paper provides a comprehensive review of the literature regarding the effect of country of origin on consumer perceptions of products and services. 2 figure 1 1 a country of origin halo effect han 1989 and b model for current study. Country of origin coo refers to the nation where a product is produced or branded.
It is important to remember that even though negative coo effects do not disappear overnight country perceptions do change over time. This leads to the next obvious question what constitutes an image of a country. Many consumers are relatively indifferent to where a product is made.
Studies have shown that when a customer becomes aware of the country of origin of a product his her image about the product is influenced either positively or negatively according to his perceptions. Thus while companies from certain countries might benefit from a positive country reputation startups from emerging economies or transition markets that have not yet built up a strong track record in any product category should deal with a negative country of origin coo effect or at least compete with leading economies with a positive. Other consumers favor goods produced in their home country.
Research in international marketing has proven that country associations do lead to customer bias. Results reveal that consumer perceptions differ significantly on the basis of product service and country of origin. Origin is usually indicated by means of a product label.
Country of origin has been found to exert a particularly potent effect on consumer evaluation in situations where there is a strong link between a country and a particular product category. A negative country image may damage the companies image this is called negative country of origin effect. Buyer behavior is affected by the national origin of products and services.
A brand is based a product is designed or manufactured or other forms of value creation aligned to a country. The country of origin effect coe also known as the made in image and the nationality bias is a psychological effect describing how consumers attitudes perceptions and purchasing decisions are influenced by products country of origin labeling which may refer to where. Such effect is referred to as country of origin effect.
The country of origin effect is the influence that the manufacturer country has on the positive or negative consumer judgment. In brief the country of origin effect measures the impact of the country in which the product is made on the consumers.
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